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Kospi sets new record as it blows past 4,400 mark

Published: 05 Jan. 2026, 18:40 Updated: 06 Jan. 2026, 09:50

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,457.52 points on Jan. 5, up 147.89 points, or 3.43 percent, from the previous trading session. [KIM JONG-HO]

The Kospi blew past a new record on Monday as it closed above the 4,400 mark for the first time, rising 3.43 percent from the previous session to hit 4,457.52. The gains came despite rising geopolitical tensions following the ouster of Venezuelan President Nicolás Maduro, which analysts said had little effect on local markets.

Foreign investors drove the rally. They bought a net 2.17 trillion won in shares ($1.5 billion), according to the Korea Exchange. Their purchases absorbed selling by individual investors, who off-loaded 1.51 trillion won, and institutions, which sold 702.4 billion won.

Investor optimism also grew ahead of Samsung Electronics’ fourth quarter earnings report, due Thursday. Expectations of a prolonged semiconductor upcycle fueled a buying spree across the sector. Some analysts expect Samsung to post more than 20 trillion won in quarterly operating profit for the first time.

Samsung Electronics shares jumped 7.47 percent to a record 138,100 won. SK hynix gained 2.81 percent to close at 696,000 won, after briefly topping 700,000 won during the session.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 4,457.52 points on Jan. 5, up 147.89 points, or 3.43 percent, from the previous trading session. [KIM JONG-HO]

Recent export data added momentum. The Ministry of Trade, Industry and Resources reported last week that semiconductor exports reached $20.77 billion in December, up 43.2 percent from a year earlier, logging 10 straight months of growth and the highest December figure on record.

“This data shows demand remains strong despite concerns over excessive investment in semiconductors,” said Seo Jung-hun, the head of the research center at Samsung Securities. “It supports continued optimism for earnings among companies involved in AI infrastructure, including semiconductors.”

Forecasts for the Kospi have also risen.

Visitors view SK hynix semiconductor products on view at the SK AI Summit 2025 held at Coex, southern Seoul, on Nov. 3, 2025. [NEWS1]

“The recovery in semiconductor earnings is stronger and faster than expected,” said Lee Kyung-min, a researcher at Daishin Securities, who forecast the Kospi to trade between 4,100 and 4,500 this month. “If the won remains stable and foreign buying continues, the Kospi could reach the 5,000 level within the first quarter.”

“Recently, semiconductor stock prices have been driven more by corporate competitiveness than by macro factors such as liquidity,” said Song Myung-seob, an analyst at iM Securities.

Song raised his target price for Samsung Electronics to 160,000 won and SK hynix to 870,000 won.

While experts have cautioned against the market’s heavy focus on chips, they largely agree that the sector will likely lead the Korean stock market again this year. In particular, attention is shifting to semiconductor materials, components and equipment suppliers that have been overshadowed by Samsung Electronics and SK hynix.

Samsung Electronics' GDDR7, a next-generation graphics DRAM optimized for gaming and AI workloads, is on display during the 2025 Korea Tech Festival in Seoul on Dec. 4, 2025. [REUTERS/YONHAP]

Yuanta Securities noted that fourth quarter earnings for domestic chip firms may surpass market expectations and that 2024 could see a two-phase upcycle involving both price leadership and increased shipments.

Shares of Hanmi Semiconductor, which produces key high bandwidth memory (HBM) equipment called TC bonders, jumped about 16 percent.

Nuclear-related stocks also surged. Doosan Enerbility closed at 83,200 won, up 10.64 percent from the previous session. The company rose 329 percent last year, the seventh-best performance on the Kospi.

Other nuclear-related stocks, such as Hyundai Engineering & Construction and Kepco Engineering & Construction, gained about 7 percent and 4 percent, respectively.

Investor sentiment was boosted by expectations that the U.S. Department of Energy will begin allocating funding for small modular reactors (SMRs), along with speculation that SMRs may be designated as national strategic technology in Korea.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG SEO-YUN [[email protected]]